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Accuracy-Related Penalty
Respondent determined that petitioners are liable for
the accuracy-related penalty for negligence prescribed by
section 6662. Petitioners contend that they should not be
liable for the penalty because they acted in reasonable
and good faith reliance on the advice of their accountant,
Mr. Robert Glen, in preparing their 1990 and 1991 tax
returns. They maintain that Mr. Glen was fully aware
of all of the facts and circumstances relating to the
formation and execution of the plan, as well as
petitioner's loans from the plan, and that Mr. Glen failed
to advise them to report the amounts received as taxable
distributions. Petitioners also maintain that petitioner
has no training or special knowledge regarding Federal
tax law and qualified plan benefits, and that he did not
understand "the application of federal tax laws to the
loans he received from the qualified plan."
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